Finance Ministry plans to increase price of cigarettes pack by UAH 5 in 2016

This hike will be realized through by raising the excise tax rate on cigarettes by 40%.

It is stated in the materials that are available at Ukrinform.

According to the plans, while raising the specific excise rate by 40%, the average excise tax for a pack of cigarettes in 2016 will increase from UAH 6.3 to UAH 9.5, and the average price of a pack of cigarettes - from UAH 15 to UAH 20.

The Finance Ministry believes that consumption of cigarettes in Ukraine will be drop from 58 billion pieces in 2015 to 54 billion pieces in 2016.

However, the revenues of the state budget of Ukraine will soar by UAH 7.5 billion - from UAH 21 billion in 2015 to UAH 28.5 billion in 2016.

Representatives of the tobacco industry oppose this scenario and offer their own.

Thus, the Finance Ministry materials also contain calculations made by tobacco companies, according to which the tax should grow by 20%, that will bolster the average excise tax on a pack of cigarettes from UAH 6.3 to UAH 7.6. Tobacco industry representatives offered to increase average price for a pack of cigarettes from UAH 15 to UAH 17.5 in 2016.

This hike, according to their calculations, will boost the government revenues from UAH 21 billion this year to UAH 24.7 billion for the next year.

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